Case 4:25-cv-14092-SDK-KGA ECF No. 29-1, PageID.517 Filed 01/26/26 Page 28 of 32
cases” where the agency has asserted a “breadth” of authority over matters of “economic and political significance.” West Virginia v. EPA , 597 U.S. 697, 721 (2022). Considering “both separation of powers principles and a practical understanding of legislative intent,” there must be “clear congressional authorization.” Id. at 723. Further, “Congress [does not] typically use oblique or elliptical language to empower an agency to make a radical or fundamental change to a statutory scheme.” Id. In effect, Coinbase contends that the 2010 CEA amendments displaced state and tribal gaming regulations, legalized sports betting nationwide, and placed sports betting (and other forms of gaming) under the exclusive regulatory jurisdiction of the CFTC, all at a time when PASPA broadly prohibited sports betting. This theory is unquestionably a “radical” and “fundamental” overhaul of both PASPA and IGRA, and certainly raises concerns of “economic and political significance.” This Court therefore has “reason to hesitate” and should require “clear congressional authorization” before considering Coinbase’s preemption argument. See id. at 721, 723. First, Congress must be clear when it “alters the federal-state framework by permitting federal encroachment upon a traditional state power.” Solid Waste Agency v. U.S. Army Corps of Eng’rs , 531 U.S. 159, 172–73 (2001). Here, the authority to regulate gaming, including sports betting, has been understood to fall
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